Barclays reports £1.9bn loss amid Trump tax change and legal costs

A near-£1bn charge related to Donald Trump’s tax reforms and further litigation provisions pushed Barclays deep into the red last year.

Despite this chief executive Jes Staley, who hailed a year of “considerable strategic progress”, collected a salary of £2.35m in 2017, the same as the previous year. His overall pay package however was down from £4.22m after his annual bonus dropped to £1.07m from £1.3m .

Barclays reported an after-tax loss of £1.9bn for 2017, including a tax charge of £2.2bn, half of which related to the US as it had previously flagged. It made a pretax profit of £3.5bn, up 10%. It also made a £2.5bn loss on the sale of its African business. UK profits were broadly flat at £1.7bn, with income down 2%.

The bank set aside £1.2bn to cover costs from litigation and conduct, compared with £1.4bn in 2016. The latest provisions included £700m for payment protection insurance (PPI), taking its total PPI bill to £9.1bn.

Staley said the bank had put most of its legal issues behind it, including the PPI and Libor scandals, leaving two major investigations.

Barclays is fighting the Department of Justice (DOJ) in the US courts in relation to the sale of mortgage-backed securities from 2005 to 2007.

The group’s dealings with Qatar are being investigated by the UK’s Serious Fraud Office, the Financial Conduct Authority (FCA), the DOJ and the US Securities and Exchange Commission.

Staley himself is under investigation by the FCA, the City watchdog, and the Bank of England’s Prudential Regulation Authority for trying to unmask a whistleblower within the bank’s staff. The bank had said his bonus would be “very significantly cut”.

Staley told Bloomberg TV that London should not suffer as a result of Brexit. “I don’t think it’s going to have a significant impact on London as a financial centre and therefore Barclays.”